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NAB lifts fixed rates: last big four rate under 2% now gone

NAB lifts fixed rates: last big four rate under 2% now gone

Australia’s third largest bank, NAB, has today hiked fixed rates for the third time in just over five weeks – closing the door on the last big four rate under 2 per cent.

NAB increased its owner-occupier and investor fixed rates by up to 0.50 per cent, including its 1-year fixed rate, which was previously 1.99 per cent.

NAB hikes for owner-occupiers paying principal and interest

Please contact us for interest only and investor rate changes

LoanOld rateNew rateChangeMonthly repayments – difference

$500K loan

1-year fixed

1.99%

2.49%

0.50%

$127

2-year fixed

2.34%

2.59%

0.25%

$65

3-year fixed

2.79%

3.09%

0.30%

$81

4-year fixed

2.89%

3.29%

0.40%

$109

5-year fixed

3.09%

3.49%

0.40%

$110

Note: Above rates are for owner-occupiers paying principal and interest on a package rate with an annual fee of $395. Monthly repayments are based on a $500,000, 30-year loan over the fixed rate term.

Previous NAB owner-occupier fixed rate hikes:

Lenders that have moved at least one rate in the last 1 month (3 November to 2 December 2021)

Lenders that have cutLenders that have hiked
Variable487
1yr fixed1534
2yr fixed1356
3yr fixed265
4yr fixed441
5yr fixed657

Source: RateCity.com.au. Note: A number of lenders have changed multiple home loan rates

RateCity.com.au research director, Sally Tindall, said: “NAB was the last big four bank to hang on to a rate starting with a ‘1’, but the bank has succumbed to funding pressures just like its rivals.”

“The number of fixed rates under 2 per cent is fast disappearing,” she said.

“Six months ago, there were 166 fixed rates starting with a ‘1’, and now there are just 78, and the exodus is far from over.

“Borrowers who had already fixed their loans with NAB will be breathing a sigh of relief at this news, but it will be a very different situation when they come off their fixed rates.

“People looking to re-fix their loan in one- or two-years’ time are likely to be looking at rates starting with a ‘3’,” she said.

Screen Shot 2021-12-02 at 8.22.24 pm

Lowest big four bank owner-occupier home loan rates

CBAWestpacNABANZ
1yr fixed

2.49%

2.24%

2.49%

2.29%

2yr fixed

2.59%

2.24%

2.59%

2.39%

3yr fixed

2.99%

2.59%

3.09%

2.79%

4yr fixed

3.09%

2.89%

3.29%

2.99%

5yr fixed

3.39%

3.09%

3.49%

3.19%

Variable

2.29%

2.19%

2.29%

2.29%

Source: RateCity.com.au. Note: CBA and Westpac rates are for a loan to value ratio of up to 70%.

Lowest rates on the RateCity.com.au database

LenderAdvertised rate
1yr fixedGreater Bank, Bank of Us

1.59%

2yr fixedBeyond Bank

1.79%

3yr fixedMOVE Bank

1.89%

4yr fixedBankVic, Southern Cross CU,

Credit Union SA

2.39%

5yr fixedBankVic, QBank

2.49%

VariableReduce Home Loans

1.77%

Source: RateCity.com.au Note: Rates are for owner-occupiers paying principal and interest. Some LVR requirements apply. 

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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